Types of Wages
“Wage is the payment to labour for its assistance to production.” -A.H. Hansen
- Minimum Wage: Minimum wage is the minimum payment to workers. So, that the may be able to in providing for basic needs for himself and his family members and to maintain his work efficiently. A minimum wage is one which has to be paid by an employer to his workers irrespective of his ability to pay. According to fair wages committee 1948, “minimum wage is the wage which must provide not only for the bare sustenance of life, but for the ‘preservation of the efficiency of the workers. for this purpose, minimum wage must provide some measure of education,medical requirements and amenities”.
- Fair wage: According to the committee on Fair Wage,1948, “Fair wage is the wage which is above the minimum wage but, below the living wage. The lower limit of the fair wage is obviously the minimum wage, the upper limit is to be set by the capacity of the industry to pay”. Thus, fair wage are rates paid to the workers of some status in the organizations of the same type and of nearby areas.
- Real Wage: It refers to the purchasing power of money wages. It represents the actual exchange value of wage rates. It reflects an adjustment to changes in the price level based on price indices.
- Piece Wage: Piece wages are the wages paid according to the work done by the worker. To calculate the piece wages, The number of units produced by the worker are taken into consideration
- Time Wage: If the labourer is paid for his services according to time, It is called as time wages. For example, if the labour is paid Rs. 50 per day, It will be termed as time wage.